The Federal Reserve is signaling it will keep lowering interest rates to get policy back to a neutral stance, but may downshift to smaller rate cut increments after last week's aggressive 50 basis point move.
Minneapolis Fed President Neel Kashkari expects "smaller steps" ahead unless economic data changes dramatically. However, others like Atlanta Fed President Raphael Bostic see rates being cut aggressively to hit neutral levels faster than initially expected.
Markets are pricing in a 50/50 chance of another quarter or half-point cut in November, with a half-point cut in December looking more likely for a total 0.75% in cuts by year-end.
While the pace may moderate, the Fed messaging indicates more easing is still to come as policymakers aim to cool inflation without tanking employment. For investors, positioning portfolios for additional rate cuts could pay dividends.
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CNBC's 'Prophet' issues urgent Fed warning
In March 2022, the Federal Reserve raised interest rates for the first time in five years.
It triggered a brutal bear market that wiped out $9 trillion of American wealth... and slashed the average investor's portfolio nearly in half.
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The Fed's next move is about to have a similar ripple effect on ordinary folks across America.
This event could dictate the next decade of every American's financial life, and it's critical that you take steps now to prepare.
Regards,
Kelly Brown
Senior Researcher, Stansberry Research
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